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Online fantasy sports company confirms ransomware attack on SEC filing

June 17, 2020

The fantasy sports company, DraftKing Inc recently filed a registration statement for Form S-1 with the United States Securities and Exchange Commission (SEC). This form shows that SBTech, a company acquired from DraftKing Inc., was hit by a ransomware attack in March.

According to the registration form required by the SEC before companies can go public on the Nasdaq, SBTech, an online gaming technology provider that merged with DraftKing, suffered the cyber attack before it ended. the merger on March 27th.

The SEC filing said:

“”On March 27, 2020, SBTech discovered a ransomware attack on its network (the “cybersecurity incident”). SBTech closed its data centers immediately. The operation of the sports betting and iGaming services of SBTech customers was interrupted due to the cyber security incident. SBTech informed the responsible regulatory authorities and notified affected partners and customers. SBTech believes that it meets the applicable legal requirements related to the cybersecurity incident. “

Ransomware gang not announced in SEC filing

Online fantasy sports company confirms ransomware attack on SEC filingOnline fantasy sports company confirms ransomware attack on SEC filing

According to ZDNet, the online betting company had to detain $ 30 million on April 10 to deal with the cyber attack. At this point, the ransomware has not yet confirmed this attack. Custody was set aside to cover the costs of damages and litigation costs.

No additional details were disclosed in the SEC filing.

DraftKing clarified that the shutdown resulted in SBTech compensating its customers for downtime.. They claim that so far this has had no significant financial impact on SBTech and DraftKings.

The SBTech investigation found that the effects of the cyber security incident were successfully mitigated. It also included recommendations for security improvements to the SBTech network and its controls on information technology.

Recent ransomware incidents

Recently, an Israel-based company reportedly paid $ 250,000 to Bitcoin (BTC) to a ransomware gang that threatened to shut down their systems.

Cointelegraph reported on June 10 that a ransomware attack called “Thanos” has been advertised in various darknet hacking forums since February.